Archives for April 2018

Karibu Loo (KL) has many exciting developments to report. Thus far in 2018, KL has gone from being a business struggling to secure long-term contracts to a business struggling with positive growing pains.

• Moving to profitability: KL has been profitable in each of the first three months of 2018, earning approximately $2,000 in January, $1,000 in February and $7,000 in March. April is on track to generate profits as well.
• Sound leadership from Maureen and Kenneth: The business has improved significantly due to more effective leadership (Maureen Mulievi), and the addition of a young, energetic sales professional (Kenneth Odongo). See all staff at Karibu Loo: https://www.karibuloo.co.ke/our-staff/
• Long-term business absorbing an impressive 46% to 94% of units: Maureen, Kenneth and the staff have been successful in securing more long-term contracts. The British Army (located in northern Kenya), has become an important client requiring extraordinary servicing and effort, contracting from 16 (currently) to 66 units at its peak in January. The construction business, with an April total of 17 units on monthly contracts, now includes Konza Construction, Nanchang Construction, TENSES, and Karen Construction. KL has retained the ongoing weekly Sunday-only rentals to three churches for seven units. Long-term rentals therefore absorb 17% (27% with the churches) of our units plus the highly variable British Army business, which puts absorption between 94% in January to 46% in April.
• More effective targeting: KL has learned that long-term rentals are primarily done by foreign corporations or government entities, and Kenneth is becoming effective at targeting important, long-term sales.
• Assets spread thin with inefficiencies costing over $15,000: Running the business has been a challenge as our assets are spread very thin. Current assets include 88 unit (including one VIP unit), a large truck, one exhauster and a pickup truck that can pull the VIP unit or the newly-built trailer to transport unit. KL had to pay for third-party trucks to transport the units to the British Army and is currently renting a large truck full-time (combined cost in Q1 was $14,000) to service the British Army business to which KL has dedicated the exhauster. All the units in Nairobi are serviced manually, which is unhealthy and unpleasant for our staff. The low number of available cabins has forced KL to rent units from competitors on occasion (Q1 cost = $615).
• Most urgent need – a reliable large truck. The biggest business challenge is currently the large truck, which has served KL well since the company’s inception but is now chronically breaking down. The portable sanitation business is not viable without a reliable truck and exhauster. We are working on plans to purchase a new truck, exhauster and 60 more loos and invite individual donations to make the purchase possible.

Today, KL employs five Ngong Road Children Association (NRCA) graduates full-time and has employed 57 high-school graduates part-time as Associates since inception. KL’s Associate Program allows recent NRCA high-school graduates to gain that very valuable first job experience and earn income. “Sales and Operations Associates” are hired to keep the cabins clean and stocked with materials at events and act as ambassadors for the organization. The Associates program teaches NRCA graduates how to be good employees – show up on time, do a good job, and dress properly – skills that students living in the slums never see demonstrated by adults in their lives yet are critical to the charity’s mission of transforming lives through employment. Associates make 500 Kenyan shillings a day plus transport and a meal. (For context, 500 Kenyan shillings covers about a quarter of a month’s rent in the slums). Almost 1,000 day-payments have been made, injecting $5,000 into the slum economy in earned wages.

In 2014 Jim Hacker was invited by his longtime friend, Bob Ackerman, to go to Friends of Ngong Road’s Annual Gathering to learn about a program Bob cared about. Bob knew the founder of the program, Paula Meyer, and had become a sponsor shortly after the organization was founded. Bob had told Jim several times about his involvement prior to the event, but Jim said it was like “reading readiness” for him that day – he was in the right mindset at the right time that year.

At the Annual Gathering, Jim was impressed with the transparency and strategy of the organization – to make a lifelong difference for students who otherwise wouldn’t have a chance. He saw an opportunity to teach his own granddaughters about the realities of global poverty and for them to potentially form a relationship with someone living a completely different life than theirs in Minnesota.

The day after the Annual Gathering, Jim went online to see the students waiting for sponsorship. He said that after reading their stories it would be hard not to do something. Having four granddaughters, Jim was drawn to sponsor Winnie. Winnie’s HIV positive mother was doing well on her antiretroviral medications, but the family was struggling to pay their rent, afford food, and send Winnie, her sister, and her two cousins who were also living with them to school. Her mother ran a fruit stand, and the few shillings she made each day could not keep up with the family’s needs.

Winnie started going to Jagiet Primary School. She made new friends both at the school and in the program who gravitated toward her and her sunny personality. At camp that year, she was seen with friends all around her and sporting a constant, joyful smile. Winnie for the first time felt like she belonged and had a group of friends and counselors who understood her.

In the U.S., Jim anxiously awaited Winnie’s handwritten letters that included hand-drawn flower borders and pictures. He loved to share them with his granddaughters on their morning drives to school. Jim admits that the relationship has not gotten as deep and communications not as frequent as he would like, but in Winnie’s last letter, she wrote, “You know, I am now twelve years old.” He thinks that is a hint that she is ready to move into more grown-up conversation.

Jim’s involvement in transforming Winnie’s life started by just saying “Yes!” to a night out with a friend. Since then, he has had a dramatic impact on one little girl’s life and encouraged his sister and son to also start sponsoring students. Jim is considering leaving a gift to Friends of Ngong Road in his will as he believes in the long term impact the program can have and wants the mission to live on well beyond his own lifetime.

Jim is a hero to Winnie and all of the students at Friends of Ngong Road. Thank you for your support, Jim.